In the following video, Foolish tech/telecom analyst Andrew Tonner tells us about the one tech company Warren Buffett loves. Buffett has long shied away from tech stocks, even during the periods when the Nasdaq has done well, but he's finally made his first foray into technology: a $15 billion position in IBM.
Andrew points out that the company has built itself into an enterprise player with a deep moat, making it a classic Buffett pick. It's also a leader in returning capital to its shareholders, with its yield having increased by an average of 17% each year for the past five years. IBM has spent $100 billion in dividends and share buybacks over the past decade. It's a cheap stock too, trading at a P/E of 14.
Stable and shareholder-friendly, IBM is widely covered on the Street, and it tends to trade at a fair price. And as Andrew says, it's the type of company that has made Buffett a billionaire.
